Computing the required rate of return


Harrison Clothiers' stock currently sells for $20.00 a share. It just paid a dividend of $1.00 a share (that is, D0=$1.00). The dividend is expected to grow at a constant rate of 6% a year. What stock pricce is expected 1 year from now? What is the required rate of return?

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Finance Basics: Computing the required rate of return
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